Beebe Uses Radio Address To Discuss Private Option

On the day he signed the funding measure for Arkansas’ private option into law, Gov. Mike Beebe used his weekly radio address to discuss the future fate of the program.

Beebe has spent his two terms as governor largely focused on jobs and schools, but the private option may prove to be one of his legacy achievements.

“I never expected my final years as governor to be centered around health care after years of focus on education and economic development,” Beebe said in his prepared weekly remarks. “But healthy kids perform better in school, and a healthier workforce can attract more companies. It will be up to future governors and legislators to decide whether to maintain or change the private option. For now, it offers a chance for Arkansans to lead healthier, happier lives.”

The controversial funding bill received 76 votes in the Arkansas House earlier this week on a fifth attempt by legislative leaders to meet the supermajority threshold needed for spending bills. The $915 million price tag will utilize Medicaid dollars under the federal health law to subsidize private health insurance plans for lower income workers making below 138 percent of the federal poverty level.

“Most of these folks don’t qualify for traditional Medicaid programs, and work at jobs that don’t offer health insurance. This coverage doesn’t require State tax dollars until 2017, and after that will still be at least 90% federally funded,” Beebe said.

The newly signed spending bill is Act 257 of the 2014 fiscal session. Beebe signed the bill into law in a private ceremony with supporters of the measure.

“Insuring Arkansans who could not otherwise afford it, will bring about a better quality of life for us all,” said Beebe. “Making available preventive medicine and regular checkups will stop illnesses from becoming chronic and halt certain conditions from occurring. This decreases health costs for everyone, particularly by reducing uncompensated care in our State. The Private Option improves the financial health of our hospitals, restoring income they’ve been losing through lower Medicare payments under the Affordable Care Act. Having more of our population insured will also create thousands of new jobs in the health-care industry, further ensuring our economic stability.”

The governor also said that other states have been watching Arkansas’ efforts in the bipartisan-led health program.

“Our Arkansas-crafted alternative has piqued a lot of interest. While the needs of every state are different, they all have common problems: working citizens with no means of insurance; hospitals struggling from uncompensated care costs; and federal Medicare payment cuts. What they don’t have is the steep 75% mandate for legislative approval that Arkansas has. For all these reasons, versions of the private option may continue to develop in other states,” Beebe said.